ARKO Corp. announced its financial results for the third quarter ended September 30, 2024, revealing a mixed performance influenced by a challenging macroeconomic environment. Merchandise contribution decreased by $6.7 million, or 4.2%, compared to the prior year, primarily due to a $7.5 million decline in same-store merchandise contribution from reduced customer transactions. Retail fuel contribution also saw a decrease of $4.2 million to $117.1 million, driven by lower gallon demand, though this was partially offset by a resilient fuel margin capture of 41.3 cents per gallon, an increase of 1.0 cent year-over-year.
Despite the declines in its retail segments, the company's Fleet Fueling segment reported an increase in fuel contribution of $1.9 million compared to the third quarter of 2023, with proprietary cardlocks contributing an additional $2.2 million. Convenience store operating expenses decreased by $3.1 million, or 1.5%, reflecting disciplined cost management, including lower personnel costs and credit card fees. This reduction was also aided by the conversion of underperforming retail stores to dealer sites.
As of September 30, 2024, ARKO maintained approximately $869 million in total liquidity, comprising $292 million in cash and $577 million in credit line availability. The company declared a quarterly dividend of $0.03 per share and had $25.7 million remaining under its share repurchase program. For the fourth quarter of 2024, ARKO expects Adjusted EBITDA to range between $53 million and $63 million, with a full-year 2024 Adjusted EBITDA guidance of $245 million to $255 million.
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